Islamabad – The federal government has decided to keep petrol and high-speed diesel (HSD) prices unchanged for the current fortnight, even as it increased petroleum levies, a move that has sparked debate over whether consumers are truly being given relief or merely absorbing a quieter fiscal adjustment.
According to official notifications, the price of petrol has been retained at Rs253.17 per litre, while high-speed diesel continues to sell at Rs257.08 per litre. While the headline prices remain steady, the government has raised the petroleum levy by Rs4.65 per litre on petrol and Rs0.80 per litre on diesel, significantly increasing the tax component embedded in fuel prices.
Officials argue that maintaining retail prices provides short-term stability for consumers amid inflationary pressures. However, economists point out that the rise in levies offsets potential benefits from softer international oil prices, effectively limiting any real relief at the pump. With the levy now forming a substantial portion of fuel costs, motorists continue to shoulder a heavy indirect tax burden.
Petrol is primarily used by private vehicles, motorcycles and daily commuters, while diesel plays a critical role in transportation, agriculture, power generation and supply chains. As a result, even marginal increases in levies can have far-reaching effects, potentially driving up freight charges and, eventually, the prices of essential goods.
Market observers note that the government has increasingly relied on petroleum levies as a revenue-generating tool, especially in the absence of room to adjust prices downward. While this strategy may support fiscal targets, it raises concerns about long-term affordability for households already grappling with rising living costs.
As fuel prices remain unchanged for now, consumers and businesses alike are watching closely to see whether upcoming price reviews will finally translate into meaningful reductions — or if levy hikes will continue to quietly erode any expected relief.
This story has been reported by PakTribune. All rights reserved.